DOCUMENTS. March 14, 2014
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1 Public Disclosure Authorized The World Bank, r Telephone: (632) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT th Avenue cor. 2 5 h Street Facsimile: (632) INTERNATIONAL DEVELOPMENT ASSOCIATION onif Uig y DOCUMENTS e March 14, 2014 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Ms. Pura Sumangil President Concerned Citizens of Abra for Good Government (CCAGG) 2/F DZPA Building, Rizal comer Zamora Streets Zone 6, Bangued, Abra Dear Ms. Sumangil: PHILIPPINES: Global Partnership for Social Accountability Grant for Guarding the Integrity of the Conditional Cash Transfer Program Project (GPSA Grant No TF015863) In response to the request for financial assistance made on behalf of Concerned Citizens of Abra for Good Government ("Recipient"), I am pleased to inform you that the International Bank for Reconstruction and Development/International Development Association ("World Bank"), acting as administrator of grant funds provided by multiple donors ("Donors") under the Global Partnership for Social Accountability Trust Fund (GPSA Trust Fund), proposes to extend to the Recipient for the benefit of Republic of Philippines ("Member Country"), a grant from the GPSA Trust Fund in an amount not to exceed eight hundred thousand United States Dollars (U.S.$800,000) ("Grant") on the terms and conditions set forth or referred to in this letter agreement ("Agreement"), which includes the attached Annex, to assist in the financing of the project described in the Annex ("Project"). This Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Project in accordance with the terms and conditions set forth or referred to in this Agreement. Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of this
2 Ms. Pura Sumangil -2- March 14, 2014 countersigned copy, this Agreement shall become effective as of the date of countersignature; provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received the countersigned copy of this Agreement 90 days after the date of signature of this Agreement by the World Bank, unless the World Bank shall have established a later date for such purpose. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Motoo Konishi Country Director, Philippines East Asia and Pacific Region AGREED: CONCERNED CITIZENS OF ABRA FOR GOOD GOVERNMENT (CCAGG) By Authorized RepresAdtative Name PURA L4C,4 1aL Title PftSOIT,; CCAC Date: MARc4 13, 101$ Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012 (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1,2006 (3) "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 (4) "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 (5) "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011
3 Ms. Pura Sumangil -3- March 14, 2014 Article I Standard Conditions; Definitions GPSA Trust Fund Grant No. TF ANNEX Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated February 15, 2012 ("Standard Conditions") constitute an integral part of this Agreement Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions or in this Agreement as follows: (a) "ANSA-EAP" means the Affiliated Network for Social Accountability- EAP, a non-profit association, with legal personality and duly registered in the Member Country's public registry of civil associations on March 8, 2011, with the Member Country's Securities and Exchange Commission Registration Number CN (b) "ANSA-EAP Agreement" means the agreement to be entered into between the Recipient and ANSA-EAP pursuant to Section 2.03 of the Annex to this Agreement, satisfactory to the World Bank. (c) (d) (e) (f) (g) "CCAGG" means a non-profit association, with legal personality and duly registered in the Member Country's public registry of civil associations on April 19, 1988, with the Member Country's Securities and Exchange Commission Registration Number "CSO" means a civil society organization legally established and operating in the Member Country's territory and selected according to criteria agreed between the Recipient and the World Bank; and "CSOs" means more than one such CSO. "PTF" means the Partnership for Transparency Fund Inc, a not-for-profit corporation, formed under Section 402 of the Not-for-Profit Corporation Law of the State of New York, May 22, "PTF Agreement" means the agreement to be entered into between the Recipient and PTF pursuant to Section 2.03 of the Annex to this Agreement, satisfactory to the World Bank. "RECITE" means Responsible Citizens, Empowered Communities and Solidarity for Social Change Inc., a non-profit association, with legal personality and duly registered in the Member Country's public registry of civil associations on March 19, 2008, with the Member Country's
4 Ms. Pura Sumangil -4- March 14, 2014 Securities and Exchange Commission Registration Number CN (h) "RECITE Agreement" means the agreement to be entered into between the Recipient and RECITE pursuant to Section 2.03 of the Annex to this Agreement, satisfactory to the World Bank. Article II Project Execution Project Objectives and Description. The objective of the Project is to develop a model for civil society- government partnership for transparent and accountable implementation of the Pantawid Pamilyang Pilipino Program ("4Ps"). The Project consists of the following parts: The Project consists of the following parts: Part 1: Third Party Monitoring of 4Ps Program and Project Management Strengthening the capacity of the Recipient for sustained and systematic Third Party Monitoring (TPM) to monitor the Member Country's 4Ps, through, inter alia: (a) (b) (c) (d) (e) The development of social audit tools to monitor the Member Country's 4Ps, particularly in relation to targeting, compliance verification, payment, and grievance redress at the municipal level. The formulation and production of a handbook on third party monitoring of 4Ps. The carrying out of an analysis on relevant topics related to the Member Country's 4Ps, including, targeting, compliance verification, payment, and grievance redress. The establishment of a working group to support policy dialogue at national or regional level and to discuss concerns with the 4Ps which may requires policy decisions/adaptation. The implementation, monitoring and evaluation of the activities financed by the grant including audits. Part 2: Mobilizing Household Beneficiaries to engage in Applied Social Accountability at the Community Level Enhancing the effectiveness of the Family Development Sessions (FDS) as social accountability tool for the 4Ps, through, inter alia:
5 Ms. Pura Sumangil -5- March 14, 2014 (a) (b) The revision of the FDS field manual for parent leaders. The provision of training to parent leaders in the 30 municipalities covered by 4Ps in using the enhanced FDS. Part 3: Building the Capacity of Civil Society Organization (CSO) members of the Northern Luzon Coalition of Good Government (NLCGG) Capacity building of member organizations of NLCGG through, inter alia, the carrying out of workshops and training with partner CSOs of the NLCGG to facilitate the adoption of common TPM procedures and tools developed under Part 1, common FDS training curriculum developed under Part 2, and a common menu of social accountability tools for use in the Project. Part 4: Knowledge and Learning Consolidation of knowledge and learning products to be developed in Parts 1, 2 and 3 of the Project, through, inter alia: the development and implementation of a knowledge and learning (K&L) plan focused on: (a) enhancing CSO partners knowledge of global good practices for improving CCT social accountability; (b) extracting best lessons from project implementation experiences using a variety of tools such as case studies; (c) sharing of experience within the direct project environment and with CSOs elsewhere in the Philippines implementing the 4Ps Program through peer learning, workshops, and publication and dissemination of K&L products; (d) exchange of experiences with the global community of SA practitioners, particularly with countries in the Latin American and Caribbean region with more mature CCT programs experiences; and (e) providing technology and technical assistance to upgrade existing capabilities of CCAGG and RECITE to undertake K&L activities Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project, with the assistance of RECITE and ANSA-EAP, all in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 ("Anti-Corruption Guidelines"); (c) this Article II; (d) the RECITE Agreement; (e) the ANSA-EAP Agreement; and (f) the PTF Agreement. The Recipient has sole fiduciary responsibility under the Project, including for procurement and financial management Institutional and Other Arrangements. (a) Prior to the implementation of the Project activities, the Recipient shall enter into an agreement with RECITE,ANSA-EAP and PTF under terms and conditions acceptable to the World Bank (the "RECITE Agreement", "ANSA-EAP Agreement" and "PTF Agreement" respectively), which shall include, inter alia: (i) the respective roles and responsibilities of RECITE,ANSA-EAP and PTF under the project, including an obligation on RECITE, ANSA-EAP, and PTF,
6 Ms. Pura Sumangil -6- March 14, 2014 respectively, to carry out the technical implementation of their respective activities under the Project; (ii) the conditions for the Recipient's payment, out of the proceeds of the Grant, of limited operating costs related to RECITE,ANSA-EAP and PTF for discharge of their respective responsibilities; (b) the Recipient shall exercise its rights and carry out its obligations under the respective RECITE Agreement, ANSA-EAP Agreement and PTF Agreement in such manner as to protect the interest of the Recipient and the Bank to accomplish the purposes of the Financing; (c) unless the World Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate, terminate, waive or fail to enforce the RECITE Agreement or the ANSA-EAP Agreement or the PTF Agreement or any of their provisions thereof; (d) the Recipient shall convene, on a semi-annual basis, meetings with a Project Steering Committee (PSC) including RECITE,ANSA-EAP and PTF, for the purpose of reporting on progress and to agree on a work program; (e) at all times during the implementation of the Project, the Recipient shall ensure that it maintains competent staff in adequate numbers, including a program manager, a financial manager, a monitoring and evaluation specialist and procurement specialists with experience in projects financed by international financial institutions; and (f) not later than January 31, in each fiscal year, the Recipient shall provide the World Bank a table of forecasted annual expenditures for the current fiscal year Donor Visibility and Visit. (a) The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the Donors' support for the Project. (b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank's request, take all measures required on its part to enable the representatives of the Donors to visit any part of the Member Country's territory for purposes related to the Project Project Monitoring, Reporting and Evaluation. (a) The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank and set forth below in paragraph (b). Each Project Report shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than forty five (45) days after the end of the period covered by such report. (b) The performance indicators referred to above in sub-paragraph (a) consist of the following: (i) an increase in the number of CSOs affiliated with the Northern Luzon Coalition of Good Government trained to actively participate in 4Ps social accountability mechanisms; (ii) an increase in the number of parent leaders with enhanced knowledge and skills in mobilizing the 4Ps grantees and facilitating engagement with local government units and service providers; and
7 Ms. Pura Sumangil -7- March 14, 2014 (iii) an increase in the number of municipalities that have adopted a plan on constructive engagement between local government units and local CSOs for enhanced social accountability and transparent 4Ps implementation. (c) The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than four months after the Closing Date Financial Management. (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank as part of the Project Report not later than forty five (45) days after the end of each calendar semester, covering the semester, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the World Bank not later than six months after the end of such period Procurement. All goods, works, non-consulting services, and/or consulting services required for the Project and to be financed, fully or partially, out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in the "Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 ("Procurement Guidelines"), and the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers", dated January 2011 ("Consultant Guidelines") Any contract for Eligible Expenditures to be financed in full or in part out of the proceeds of the Grant shall be included in the procurement plan prepared by the Recipient and approved by the Bank in accordance with the Procurement Guidelines and the Consultant Guidelines, prior to initiating the procurement process for any such contract. Article III Withdrawal of Grant Proceeds Eligible Expenditures. (a) The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (i) the Standard Conditions; (ii) this Section; and (iii) such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this
8 Ms. Pura Sumangil -8- March 14, 2014 Agreement pursuant to such instructions), to finance 100% of Eligible Expenditures directly related to the achievement of milestones for each part of the Project, and consisting of goods, consultants' services (including audits), Training, and Operating Costs, inclusive of taxes. (b) For the purposes of this Section the term (i) "Training" means expenditures incurred by the Recipient to conduct training, including purchase and publication of materials, rental of facilities, course fees, and travel and subsistence of trainees; and (ii) "Operating Costs" means reasonable recurrent expenditures incurred by the Recipient required for the implementation, monitoring and evaluation of the Project, and by RECITE,ANSA-EAP and PTF, respectively, required for the implementation of some of the activities under the Project, including salaries of staff of the Recipient, RECITE,ANSA-EAP and PTF working on the Project, office rental, supporting staff for the Project, transportation, basic utilities (electricity, water), and communications expenses (telephone, internet access, among others), but excluding the salaries of officials of the Member Country's civil service; and any other reasonable expenditures as may be agreed upon by the World Bank. (c) The Recipient undertakes that the proceeds of the Grant shall not be used to finance the following goods or operating costs: art, furniture, carpet, vehicles and generators Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of countersignature of this Agreement by the Recipient Withdrawal Period. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is four (4) years after the date of countersignature of this Agreement by the Recipient. Article IV Recipient's Representative; Addresses Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its President Recipient's Address. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Concerned Citizens of Abra for Good Government (CCAGG) 2/F DZPA Building, Rizalcorner Zamora Streets Zone 6, Bangued Abra, PHILIPPINES Telephone:
9 Ms. Pura Sumangil -9- March 14, World Bank's Address. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development/International Development Association 1818 H Street, N.W. Washington, D.C United States of America Facsimile:
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